08202. THE APT VS. CAPM MODEL OF PORTFOLIO SELECTION. Examines the development, strengths and weaknesses of the CAPM model of investment portfolio selection. The arbitrage pricing theory (APT) is presented as a favorable alternative to the CAPM with the reasoning that the APT model is more general and has more explanatory power than the CAPM. 7 pages, notes in text, 7 bibliographic sources.